Solar energy consumers in Pakistan are facing a major policy shift after the National Electric Power Regulatory Authority (NEPRA) approved new net metering regulations 2026, significantly reducing the rate at which new consumers can sell electricity back to the national grid.
Under the official notification, existing solar users will continue to sell their generated electricity at the old rate of Rs 25.32 per unit. However, new consumers will now receive only Rs 8.13 per unit, following a massive reduction of Rs 17.19 per unit. This marks nearly a threefold drop in buyback rates.
Introduction of Net Billing System
NEPRA has also introduced a net billing mechanism, replacing the earlier unit-for-unit adjustment model. Under the new system, electricity exported to the grid will not be treated equal to electricity imported. Consumers will pay full government tariff and slab rates for grid electricity they use.
Additionally, the license period for new net metering consumers has been reduced from 7 years to 5 years, tightening the regulatory framework.
How This Affects Solar Growth in Pakistan
According to energy monitoring data, Pakistan currently has around 7,000 MW capacity installed under net metering systems. Meanwhile, an estimated 13,000–14,000 MW capacity exists in off-grid solar setups, and experts believe this number may rise sharply after the new policy.
Analysts say the reduced buyback rate could slow down on-grid solar adoption but may accelerate investment in battery storage and off-grid systems.
Where Most Solar Consumers Are Located
Pakistan has approximately 466,000 solar net metering consumers, with 82% located in major cities. Distribution includes:
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Lahore – 24%
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Multan – 11%
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Rawalpindi – 9%
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Karachi – 7%
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Faisalabad – 6%
This urban concentration means the policy change could impact middle-class households and businesses the most.
